Caravaggio, The Cardsharps, c. 1594.

Gambling has had many different meanings depending on the cultural and historical context in which it is used. Currently, in western society, it generally has an economic definition and meaning and typically refers to “wagering money or something of material value on something with an uncertain outcome in hope of winning additional money or material goods”. Furthermore:

• the outcome of the wager is typically evident within a short period of time
• the primary intent of the bet is to win additional money or material goods

This definition of gambling usually excludes:

• emotional or physical risk-taking where what is being risked is not money or material goods (e.g., skydiving, running for office, asking someone for a date, etc.)
• buying insurance, as the primary intent of the purchase is to protect against loss, rather than to collect or win
• all forms of long-term ‘investment’ (stock market, real estate) with positive expected returns and economic utility
• starting a new business, as time and effort are also being wagered and the outcome is not determined in a short period of time
• situations where the possibility of winning additional money or material goods is a secondary or incidental reason for the wager/purchase (e.g., buying a raffle ticket to support a worthy cause)

Gambling varies on four dimensions:

• 1. What is being wagered (money or material goods).
• 2. How much is being wagered.
• 3. The predictability of the event. For some things such as lotteries, slot machines and bingo, the results are random and unpredictable. No skill or system will give you any advantage. For other things such as sports betting and horse racing there is some predictability to the outcome. In this situation greater knowledge and skill gives a person an advantage over other bettors.
• 4. The ‘expected value’, the positive or negative mathematical expectation.

Bibliography

• Brisman, Andrew. American Mensa Guide to Casino Gambling: Winning Ways (Stirling, 1999) ISBN 080694837X
• Ortiz, Darwin. Gambling Scams: How They Work, How to Detect Them, How to Protect Yourself (Carol, 1990) ISBN 0396083668 (Hardcover) ISBN 0818405295 (Paperback)
• Reith, Gerda. Age of Chance: Gambling in Western Culture ISBN 0415179971 (Hardcover) ISBN 0415263093 (Paperback)
• Steinmetz, Andrew. The Gaming Table: Its Votaries and Victims Gutenberg text
• Thorp, Edward O. Beat the Dealer: A Winning Strategy for the Game of Twenty-One (Vintage, 1966) ISBN 0394703103

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia.